When it comes to trading Forex it is important that you have significant experience and practice, which can best be attained through using a demo account. Using one of these accounts gives new traders the opportunity to practice their trading skills and strategies without using – and risking – actual money. Using demo accounts to practice trading Forex means that you can see which strategies work and which don’t so that when comes to trading on the actual Forex markets you can do so with an effective strategy in mind.
By starting off your trading career by practicing on s meta-trader demo account will give you a good understanding of how this platform works. The metatrader 4 demo account has a number of features and tools that traders can use to sharpen their skills, as well as get accustomed to using the platform before accessing it live. One particularly good feature of the metatrader 4 download is that it does not expire and other than the credit balance there are no limits so you can keep practicing your strategies until you are completely satisfied with them.
With the Forex demo account there is virtually no difference to trading to real money. As with a real account you will be expected to comply with the rules and regulations of trading Forex, and you have full access to customer support as you would if you were using a live account. You can also use the live chat or email support for answers and assistance related to your online trading.
Upon opening your metatrader 4 demo account it will be issued with $100 000 of virtual money that can be used when making bids and executing trades. However, should your bids and trades be successful you will not be able to draw this money from the accounts as it is only a demo account and this currency is virtual and for practicing with only.
When using a demo trading account you will learn how to manage risk properly. This means that if you make bids that do not go as expected then you will have the practice and knowledge to get out of the situation. Using a demo account is a great way to learn about the risk that trading poses and to learn how to judge and predict currency and market fluctuations.
Keep in mind that it isn’t just novices who take advantage of free forex demo accounts – experienced traders use them to test new strategies as well. Ensure that you are very familiar with the trading platform by using a demo account to hone your skills.
Dave Tucker is a financial adviser who has a keen interest in Forex trading.
- Why Use MetaTrader as a Forex Platform? (forextradingsystemcentral.com)